Illinois State Board of Investment, Chicago, issued an RFP for a foreign-tax consulting firm in an effort by the $10.2 billion board to hold more emerging markets securities directly, said William R. Atwood, executive director.
In making its first such move, the board plans to build its organizational infrastructure to enable it to hold more securities issued in emerging markets by complying with their tax laws and investor registration requirements, Mr. Atwood said.
Currently, the board has about 15% to 20% of its $2.1 billion international equity portfolio allocated to emerging markets, all invested at the discretion of its international equity managers. Much of that exposure is through American depository securities and exchange-traded funds.
The board has no plans to change its overall emerging markets allocation or add managers, Mr. Atwood said.
The RFP is available at ISBI’s website, www2.illinois.gov/isbi. Proposals are due March 4. The board could make a selection March 18.